Welcome to my investment blog where I share with you my analysis of REITs in Singapore.

I hope that my investment philosophy will bring me a steady stream of income apart from my job. I am aiming for at least $3,000 per month which can sustain the current expenses of myself and my family.

Do enjoy reading my blog and post any comments that you have. I welcome them because it is a time to learn from each other.

When I am looking at investing in REIT, here are some of the guidelines that I am looking at. Feel free to comment on it. I am willing to listen to ideas.

-> at least 8% yield.
-> Price that is lower than its NAV.
-> Low gearing (if possible)
-> High secured NAV.

Current Dividend income is $3,800/month.

Thursday, May 21, 2015

Analysis of Rickmer Maritime Trust

Current Price on 17th May 2015 = $0.275
  • Yield = 10.73%  
  • Price-to-book Ratio = 0.387
  • Assets per unit = $1.403
  • Debt per unit = $0.693 (including current liabilities)
  • Gearing = 49.7%
Rickmer Maritime Trust has fallen to $0.275 which somehow caught my attention and thus I write this blog on it. It look promising but you have to see the history.

Yield is at a high of 10.73% which seems good. Moreover, if you are an investor and you participated in their DRP, you would have gotten units which are priced at 10% discount, thus pushing the yield higher at 11+%. Its price-to-book ratio is super low at 0.387 although I wonder when they revalue their ships. Gearing is still dropping and currently at 49.7%.

Two things caught my eyes in their presentation. Firstly is the drop in their average charter rate which means their revenue will drop. Secondly, is the rise in average charter rate in general. Thus, the two lines are currently closing on each other. This means the next few quarters are going to be interesting as it is going to reflect the exact situation of the trusts and whether it can be sustained.

Just looking and see whether there is a chance to turn around. If there is, I will enter and wait for the turn around to reap the rewards. 11% yield seem attractive. 

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